Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,025,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1,050,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? a. $1,050 b. $51,250 c. $52,500 d. $1,025

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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How much overhead should be applied to Job No. B12 on this financial accounting question?

Vektek, Inc. thinks machine hours is the best activity base for its
manufacturing overhead. The estimate of annual overhead costs for its jobs
was $1,025,000. The company used 1,000 hours of processing on Job No.
B12 during the period and incurred overhead costs totaling $1,050,000. The
budgeted machine hours for the year totaled 20,000. How much overhead
should be applied to Job No. B12?
a. $1,050
b. $51,250
c. $52,500
d. $1,025
Transcribed Image Text:Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,025,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1,050,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? a. $1,050 b. $51,250 c. $52,500 d. $1,025
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